Belize has secured a new financial shield designed to provide rapid emergency funding after major hurricanes, marking a significant development in the country’s disaster preparedness strategy.

The Inter-American Development Bank (IDB) announced that it has executed its first catastrophe swap on behalf of Belize, transferring part of the country’s hurricane risk to international reinsurance markets through Swiss Re.

The protection covers the period from August 1, 2026, through May 31, 2028, with up to US$20 million in coverage and a maximum payout of US$10 million in any single policy year.

Unlike traditional disaster assistance, which can depend on damage assessments and lengthy funding processes, the parametric arrangement can release financing when pre-agreed hurricane triggers are reached.

The move gives Belize an additional financial tool to respond quickly to the economic and infrastructure damage that can follow a major storm.

The landmark arrangement could also provide a model for other Caribbean countries seeking faster access to emergency funds as climate-related risks continue to challenge national budgets.

For Belize, the deal strengthens the country’s financial preparedness as the region enters another hurricane season.